South Korea’s Bold Move: Crypto Firms on Path to Venture Status
South Korea is making waves in the crypto industry by proposing a major shift that could see digital asset companies granted venture organization status, aligning them with the benefits enjoyed by traditional startups. The Ministry of SMEs and Startups unveiled this ambitious plan on July 9, 2025, signaling a potential reversal of a policy from 2018 that had previously excluded crypto firms from essential government support programs.
The Potential Impact of the Proposal
If implemented, this proposal would open up a new realm of opportunities for crypto trading platforms and brokerage services, allowing them to qualify as venture companies once again. This status comes with a host of financial benefits, including tax incentives, funding opportunities, and business development support. Specifically, companies designated as venture entities could benefit from a 50% corporate income tax reduction for five years, a 75% cut in business real estate acquisition tax, and up to 70% discounts on broadcast advertisements. These perks, akin to those enjoyed by traditional tech startups, could potentially attract more crypto businesses to South Korea.
A Shift from Past Policies
The proposed move marks a significant departure from South Korea’s earlier stance on crypto businesses. In 2018, these companies were categorized with industries like clubs and gambling establishments, effectively barring them from venture business benefits. This shift in approach highlights the government’s newfound commitment to nurturing the digital asset sector, aiming to provide tax breaks, grants, and state funding to crypto firms.
Legal Framework and Regulatory Support
The timing of this proposal coincides with South Korea’s efforts to establish a robust regulatory framework for crypto enterprises. The enactment of the Virtual Asset User Protection Act in July 2024 laid down crucial safeguards for crypto users and set clear guidelines for industry operations. This enhanced regulatory environment likely bolstered policymakers’ confidence in extending support to crypto companies, aligning them with other innovative businesses.
Expert Commentary from Sam Boolman, ChainIntel’s Lead Analyst
“South Korea’s move to grant venture status to crypto firms is a significant step towards legitimizing the industry and fostering innovation. By providing tax incentives and funding support, the government is signaling its commitment to integrating digital assets into the mainstream economy. This shift in policy reflects a broader trend of regulatory maturation in the crypto space, which could attract more investors and businesses to South Korea.”
Public Input and Future Prospects
While the proposal holds promise, its final outcome hinges on public feedback. Stakeholders have until August 18, 2025, to share their views on the proposed changes, underscoring South Korea’s consultative approach to regulatory amendments. As the government considers the feedback received, the crypto community eagerly awaits further developments that could reshape the industry landscape in the country.
South Korea’s progressive stance on crypto-friendly policies, including the potential for stablecoin offerings and the expansion of crypto market access to various entities, reflects a broader shift towards embracing digital assets. With the public comment period ongoing, all eyes are on South Korea as it navigates this pivotal juncture for its crypto ecosystem.
